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Bill

SB 157

TO AMEND THE LAW CONCERNING BENEFITS UNDER THE STATE PUBLIC EMPLOYEE RETIREMENT SYSTEMS.

2025 Regular Session Introduced by Jim Dotson and 2 co-sponsors

Senate Bill 157 aimed to offer life insurance benefits to beneficiaries of deceased Arkansas public employees, addressing financial support and unfunded retirement liabilities.

Died in House Committee at Sine Die adjournment.
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Bill Summary · SB 157

Summary of Senate Bill 157

Bill Number: SB 157
Title: To Amend the Law Concerning Benefits Under the State Public Employee Retirement Systems
Status: Died in House Committee at Sine Die adjournment
Introduced: January 30, 2025
Sponsors:
- Primary: Senator J. Dotson
- Cosponsors: Representatives Perry, Warren

Purpose and Intent

Senate Bill 157 aimed to amend existing laws governing benefits under various Arkansas public employee retirement systems. The primary focus of the bill was to introduce a pension-owned life insurance policy as a potential benefit for members of these retirement systems. The legislation sought to provide financial support to beneficiaries of deceased members while also addressing the unfunded liabilities of the retirement systems.

Key Provisions

The bill included several significant amendments and provisions, notably:

  1. Life Insurance Benefit:

    • Each state retirement system (including the Arkansas Public Employees' Retirement System, State Police Retirement System, Arkansas State Highway Employees' Retirement System, Arkansas Teacher Retirement System, and Arkansas Local Police and Fire Retirement System) may offer a life insurance benefit to the beneficiaries of deceased members.
    • The life insurance payment would be a set amount, with any overpayments deducted before distribution to the beneficiary. The remaining balance would be allocated to reduce the system's unfunded liabilities.

  2. Legislative Intent:

    • The bill articulated that it is not mandatory for any state retirement system to provide this life insurance benefit, allowing flexibility based on the system's capabilities and policies.

  3. Implementation Rules:

    • The Board of Trustees for each retirement system would be responsible for promulgating rules to implement the life insurance provisions.

  4. Amendments:

    • The bill underwent several amendments that modified language regarding the mandatory nature of the life insurance benefits, changing "shall" to "may" in multiple instances to indicate optionality.

Affected Parties

The bill would have impacted:
- Public Employees: Members of the various state retirement systems who could potentially receive life insurance benefits.
- Beneficiaries: Family members or designated beneficiaries of deceased public employees who would benefit from the life insurance payouts.
- Retirement Systems: The financial health of the retirement systems, as the bill aimed to address unfunded liabilities through the proposed life insurance payments.

Legislative Timeline

  • January 30, 2025: Bill filed and read for the first time.
  • March 31, 2025: Multiple amendments were adopted, and the bill was reported correctly engrossed.
  • April 3, 2025: The bill passed the Senate and was transmitted to the House.
  • April 8, 2025: The bill was placed on the second reading for amendment and was engrossed.
  • May 5, 2025: The bill died in the House Committee at Sine Die adjournment.

Conclusion

Senate Bill 157 represented an effort to enhance the benefits available to public employees in Arkansas by introducing a life insurance policy as a potential benefit. Despite its introduction and subsequent amendments, the bill ultimately did not progress past the House Committee stage.

Compiled from official sources — confirm details with the bill’s official record.

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